Mind the gap

The USD gapped sharply lower in the Asian opening, a relative rarity in foreign exchange. Although the buck has retraced much of its loss against the EUR (and indeed all of it against the yen), Macro Man believes this is highly suggestive of which way the wind is blowing.

It therefore makes sense not to be too greedy in hoping for a retracement; therefore, Macro Man buys 10 million EUR/USD at the curent offer of 1.3110.

He may look to sell out his $ call against the yen over the next 24 hours; more to come later.